Watched HGTV tell my parents to gut their kitchen for “maximum ROI.” They spent $80K. Got maybe $40K back when they sold. The math on renovations is worse than people think.
The ROI Lie
Most renovations don’t pay for themselves. They make houses more livable and maybe easier to sell. That’s valuable. Just don’t expect to profit.
The exception: fixing things that are genuinely broken or dated enough to scare buyers.
What Actually Returns Well
Minor kitchen updates – not gut jobs. New counters, updated hardware, painted cabinets. Maybe $10-15K that returns 70-80%.
Bathroom refreshes – new vanity, mirror, light fixtures, fresh paint. Under $5K often returns close to 100%.
Curb appeal – new door, landscaping, exterior paint touch-ups. Returns can exceed 100% because it affects first impressions so heavily.
What Doesn’t
Swimming pools. Returns about 50% and only to buyers who want pools.
Luxury finishes in modest neighborhoods. You can’t get a $500K sale in a $300K neighborhood no matter how nice the kitchen is.
Room additions. Expensive, often return 50-60 cents per dollar.
The Right Approach
Fix what’s broken. Update what’s dated. Stop there. The beautiful kitchen you want is probably not worth building if you’re selling within 5 years.
If you’re staying long-term, different calculation. Enjoyment has value too.
